One of the worries for Power Financial is that there will be a meaningful downturn in the near future.
If you look at the TSX over the past year you will see that lately the TSX has traded in a band and then broke out of this band downward twice recently. This is not a good sign. Go to Globe Investor and click on TSX chart to get a look at its action over the past year.
It is also May. This is not a month for strong upward markets. Also, European financial problems are front and center in investor’s thoughts. However, I do not blame the voters in Europe. The austerity policies have only produced economic problems.
Basically, countries grow or inflate or do both to get out of debt problems. It does not look like Europe can grow its way out. If they inflate their way out, it is also messy, but people tend to go along with that more than with austerity policies.
They will have to make structural changes, but this has been very difficult for Europeans and they will not do this until they are forced into it.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.